Power outages in some mines, Kazakhstan miners usher in a “difficult winter”

Wu said it was learned that a large number of mines have been affected by power cuts due to power shortages in Kazakhstan and power shortages in winter. The southern part is focusing on cleaning up illegal mining in combination with power consumption data and IP addresses. Some organizations have decided to move from Kazakhstan to the United States.

According to the latest report from Neftegaz.RU, Kazakhstan’s national grid operator has begun to restrict the power rationing to crypto miners. Energy Minister Magzum Mirzagaliyev proposed to limit the power supply of each mine to 1 MW and the power supply of the entire industry to 100 MW. This proposal has been criticized by miners, and the Blockchain and Data Center Industry Association believes that the government should crack down on illegal mining instead of restricting companies that pay taxes. On October 15, the state grid operator KEGOC made a statement similar to that of the Minister of Energy after announcing the power cut, saying that it would cut off customers who “excessively consume”.

According to “Kazakhstan Today”, Kazakhstan Energy Minister Magzum Mirzagaliev told local media that electricity consumption in 2021 has increased by 7% compared to last year. The surge in demand is mainly due to more and more data centers dedicated to cryptocurrency mining .
He emphasized that “this is a very large growth.” The activities of crypto miners now have no significant positive impact on socio-economic indicators. Mining consumes cheap electricity generated in Kazakhstan, but the mined cryptocurrency is usually sold elsewhere, making a profit. Accumulate abroad. However, he still said that Kazakhstan needs to develop its encrypted mining industry, and expressed confidence in the development of the industry, which has “very good opportunities”, and emphasized the country’s potential to expand the use of renewable energy. The department has prepared a number of recommendations on how to deal with the power shortage caused by miners. These measures include limiting the power consumption of existing mining data centers and suspending the approval of new crypto mining farms.

Kazakhstan miner Didar said on Twitter that Kazakhstan is facing power shortages. The government is preparing for action. South Kazakhstan faces the risk of strict mining power restrictions. Relevant people told Wu that the blockchain said that the winter power shortage in Kazakhstan is the norm, and that this situation should be considered in advance in the construction of a mine in Kazakhstan. The northern part of Kazakhstan is rich in coal resources, and the power supply is relatively sufficient. The southern part is dominated by natural gas power generation, so there is a large gap in winter. Because of the backward power grid construction, the electricity from the north cannot be transmitted to the south on a large scale, which is one of the reasons why the south is scarce and difficult to improve.

The core of the lack of electricity in Kazakhstan lies in the small scale of Kazakhstan’s overall electricity supply. Statistics show that in 2020, Kazakhstan will generate 106 billion kWh of electricity for the whole year, and consume about 105 billion kWh of electricity. There is a slight surplus of electricity supply. Kazakhstan currently has 155 power stations, 69% of which are coal-fired power stations and 9% are hydropower stations.

According to the CCAF Financial Center in Cambridge, the latest data show that as of the end of August, the United States accounted for 35.4% of the global Bitcoin computing power, more than double the 16.8% at the end of April. Kazakhstan and Russia are close behind, with 18.1% and 11% shares respectively (up from 8.2% and 6.8% in April). Considering that Bitcoin consumes 100 billion kilowatt-hours to 150 billion kilowatt-hours of electricity throughout the year, Kazakhstan has added about 10 billion kilowatt-hours of electricity (10% of the total network computing power), which is also in line with the aforementioned Minister of Energy. Said, an increase of 7% power consumption is close.

In comparison, China’s power generation in 2020 will be 7.779 trillion kilowatt-hours, the United States will have 4.287 trillion kilowatt-hours, and Russia will be about 1.0854 trillion kilowatt-hours. In other words, Kazakhstan’s electricity generation is only 1/42 of that of the United States, and Kazakhstan’s Bitcoin mining power consumption is 1/2 of that of the United States. Therefore, for Kazakhstan, the short-term rapid increase in computing power is indeed “unbearable.”

However, Kazakhstan has the infrastructure left over from the former Soviet Union and will gradually expand its power generation scale in an orderly manner. However, industry professionals also reminded that Kazakhstan is not a country with a regulated market environment under the rule of law, such as the United States and Canada, and there may be some fraud and corruption. Under low construction costs and electricity prices, there are other risks that cannot be underestimated.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/power-outages-in-some-mines-kazakhstan-miners-usher-in-a-difficult-winter-2/
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